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Chapter 06
Defining the Organization's Strategic Direction
True / False Questions
1. Formulating a technological innovation strategy first requires an accurate appraisal of where the
firm currently is.
True False
2. In general, the more firms competing that are of comparable size, the more competitive the
industry will be.
True False
3. When demand is increasing, there is less revenue to go around and firms will experience more
competitive pressure.
True False
4. Low exit barriers intensify rivalry by making firms reluctant to abandon the industry.
True False
5. According to Porter's five-force model, the threat of potential entrants is influenced by the height
of entry barriers.
True False
6. According to Porter's five-force model, the degree to which a firm relies on one or a few suppliers
will influence its ability to negotiate good terms.
True False
6-1
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
7. Weekly News Inc. bought the paper mill that supplied paper for printing its magazine. This is an
example of horizontal integration.
True False
8. Ammunition can be considered a complement for firearms.
True False
9. A strategic stakeholder analysis emphasizes the stakeholder management issues a firm ought to
attend to due to their ethical or moral implications.
True False
10. According to Porter's value chain model, firm infrastructure is a primary activity.
True False
11. Resources of a tangible nature that can be readily codified are called tacit resources.
True False
12. Path dependency refers to the abilities that make a firm more agile and responsive to change.
True False
13. A firm's emphasis on a scientific discipline that is central to its core competency can make the
firm less attractive to individuals from other disciplines.
True False
14. According to Prahalad and Hamel's model, it is possible for a firm to develop core competencies
to a set of abilities that enable it to quickly reconfigure its organizational structure and routines
in response to new opportunities.
True False
6-2
Education.
15. Dynamic capabilities enable firms to quickly adapt to emerging markets or major technological
discontinuities.
True False
Multiple Choice Questions
16. Which of the following statements is true of Porter's five-force model?
A. It states that the attractiveness of an industry is unaffected by the industry's degree of rivalry.
B. It fails to acknowledge the role of substitutes for customers.
C. It is often used in practice to assess a specific firm's external environment.
D. It states that oligopolistic industries are less competitive if firms choose to engage in price
wars.
17. Mr. Crunchy Inc. is a firm experiencing severe losses. However, with large initial investment in
manufacturing equipment and infrastructure, the firm is finding it difficult to abandon the
industry. According to Porter's five-force model, the company is facing a(n):
A. vertical integration.
B. exit barrier.
C. horizontal integration.
D. substitute threat.
18. According to Porter's five-force model, if suppliers of a particular good are very abundant, _____.
A. their bargaining power will be less

B. their level of differentiation will be very high
C. their level of vertical integration in the industry will be high
D. their annual employee turnover rates will be less
6-3
Education.
19. Ceramic Customs Corp. required a specific type of ceramic to make its tiles. Since there was only
one supplier for that particular ceramic, the firm was forced to source all of its supplies from it.
The firm tried negotiating the price of the material but failed to get any reduction on the cost.
This was because:
A. the supplier had more bargaining power than the firm.

B. the supply was unlimited.
C. the supply exceeded the demand.
D. the industry had barriers to entry.
20. According to Porter's five-force model, if a buyer can threaten to backward vertically integrate, it
will:
A. decrease the buyer's bargaining power.

B. increase the buyer's bargaining power.
C. increase the supplier's bargaining power.
D. lower the threat of entry into the industry.
21. Factors that make it difficult or expensive to change suppliers or buyers are referred to as _____.
A. transactional costs
B. monopoly costs
C. marginal costs
D. switching costs
22. Perfecto Espresso Corp. is a chain of coffee shops in the United States. Earlier it used to source
its coffee from several coffee suppliers. However, recently it started its own coffee plantation to
supply its coffee shops. This is an example of:
A. forward vertical integration.

B. backward vertical integration.
D. substitution.
6-4
Education.
23. Allure Fabrics Corp. supplies cotton, linen, and silk fabrics to various designer wear boutiques in
and around Florida. The firm has recently launched a boutique in Florida under its own brand
name to sell women's fashion apparel. Allure Fabrics is practicing:

D. substitution.
24. Scripts & Scrolls Corp. supplies printing paper to select publishing houses. When its customers
asked for a discount in the cost of supplies, the company had to oblige fearing that the
customers might withdraw pending contracts. This shows the increased:
A. bargaining power of buyers.

B. bargaining power of suppliers.
C. threat of substitutes.
D. vertical integration of buyers.
25. Ample Espresso Corp. is a coffeehouse located across from Tian's Kitchen, a restaurant.
According to Porter's five-force model, the services and products provided by both are most
accurately classified as:
A. complements.
B. competitors.
C. substitutes.
D. intermediates.
6-5
Education.
26. Sam's Sugar Corp., a leading cane sugar manufacturer, faces a threat of going out of business
when a rival company introduces a zero-calorie sweetener to replace the high-calorie cane sugar.
According to Porter's five-force model, the two products are:
A. complements.
B. supplements.
C. intermediates.
D. substitutes.
27. The Corner Shop Corp. is a leading supermarket chain in Chicago. According to Michael Porter's
model of a value chain, which of the following activities of the firm is a primary activity?
A. A training session for the floor attendants at The Corner Shop outlets
B. An advertising campaign for a new The Corner Shop outlet
C. The accounting function at The Corner Shop outlets
D. The hiring of lawyers to ensure that the firm adheres to labor laws
28. According to Michael Porter's model of a value chain, which of the following is a support
activity?
A. Accounting activities
B. Outbound logistics
C. Marketing
D. Inbound logistics
29. Which of the following would be an example of a tacit resource?
A. An oddsmaker who works for a large casino in Las Vegas and is correct 95 percent of the time
B. Hand-woven fabrics made by local shops
C. Chipset manufacturing machine bought by an electronics company
D. A distiller used to make malt liquor
6-6
Education.
30. A resource can be extremely difficult to imitate if:
A. it can be readily codified in written form.

B. it is not path dependent.
C. it arises through the complex interaction of multiple people.
D. it is clear how the resource gives rise to value.
31. Socially complex resources are:
A. resources or activities that emerge through the interaction of multiple individuals.

B. resources that cannot be defined in terms of a numerical value.
C. resources that require public sanction in order to be utilized for profit-making purposes.
D. resources that are shared by different parties thereby making them easily imitable.
32. The relationship between a _____ resource and the outcome it produces is poorly understood.
A. socially complex
B. causally ambiguous
C. logistically outbound
D. logistically inbound
33. Which of the following statements is true of core competencies?
A. A firm's core competency refers to a single ability.

B. A firm's core competency is more than just a core technology.
C. An individual business unit has only one core competency.
D. A firm's core competency is usually easy to imitate.
6-7
Education.
34. Piezo Tech Solutions supplies hospitals with software to track insurance claims. As insurance
regulations and policies are always changing, its software needs to have the ability to be agile
and responsive to change. In other words, the software needs:
A. dynamic capabilities.
B. tacit resources.
C. rigid competencies.
D. to be path dependent.
35. When Faslow Medical Center in Exeter County changed its name to Faslow Hospital, it also
unveiled a plan to build a medical tower that would double its physical facilities by 100 percent
within the next 10 years. It also announced that its goal was to not only serve Exeter County but
also the entire region including the five contiguous counties. This is most accurately an
expression of:
B. strategic intent.
C. monopoly rent.
D. supplier bargaining power.
Essay Questions
36. Explain the influences on the threat of potential entrants into a market according to Porter's five-
force model.
6-8
Education.
37. What properties must resources have to be a potential source of sustainable competitive
advantage?
38. What are core competencies?
39. Explain the advantages and disadvantages of rewarding and promoting the development of core
competencies.
6-9
Education.
40. What is the danger of not having a strategic intent? In your answer, assume your company
operates a hospital in a city with a population of 30,000 people, located about 50 miles away
from a large city.
6-10
Education.
Chapter 06 Defining the Organization's Strategic Direction Answer Key
True / False Questions
1. Formulating a technological innovation strategy first requires an accurate appraisal of where

(p. 111) the firm currently is.
TRUE
Difficulty: 1 Easy
2. In general, the more firms competing that are of comparable size, the more competitive the
(p. 112) industry will be.
TRUE
Difficulty: 1 Easy
3. When demand is increasing, there is less revenue to go around and firms will experience more
(p. 113) competitive pressure.
FALSE
Difficulty: 1 Easy
4. Low exit barriers intensify rivalry by making firms reluctant to abandon the industry.
(p. 113)
FALSE
Difficulty: 1 Easy
5. According to Porter's five-force model, the threat of potential entrants is influenced by the
(p. 113) height of entry barriers.
TRUE
Difficulty: 1 Easy
6-11
Education.
6. According to Porter's five-force model, the degree to which a firm relies on one or a few
(p. 113) suppliers will influence its ability to negotiate good terms.
TRUE
Difficulty: 1 Easy
7. Weekly News Inc. bought the paper mill that supplied paper for printing its magazine. This is
(p. 114) an example of horizontal integration.
FALSE
Difficulty: 2 Medium
8. Ammunition can be considered a complement for firearms.

(p. 114)
TRUE
9. A strategic stakeholder analysis emphasizes the stakeholder management issues a firm ought
(p. 115) to attend to due to their ethical or moral implications.
FALSE
Difficulty: 1 Easy
10. According to Porter's value chain model, firm infrastructure is a primary activity.
(p. 116)
FALSE
11. Resources of a tangible nature that can be readily codified are called tacit resources.
(p. 118)
FALSE
Difficulty: 1 Easy
6-12
Education.
12. Path dependency refers to the abilities that make a firm more agile and responsive to change.
(p. 121)
FALSE
Difficulty: 1 Easy
13. A firm's emphasis on a scientific discipline that is central to its core competency can make the
(p. 121) firm less attractive to individuals from other disciplines.
TRUE
Difficulty: 1 Easy
14. According to Prahalad and Hamel's model, it is possible for a firm to develop core
(p. 121) competencies to a set of abilities that enable it to quickly reconfigure its organizational
structure and routines in response to new opportunities.
TRUE
Difficulty: 1 Easy
15. Dynamic capabilities enable firms to quickly adapt to emerging markets or major technological
(p. 121) discontinuities.
TRUE
Difficulty: 1 Easy
Multiple Choice Questions
6-13
Education.
16. Which of the following statements is true of Porter's five-force model?
(p. 111)
A. It states that the attractiveness of an industry is unaffected by the industry's degree of

rivalry.
B. It fails to acknowledge the role of substitutes for customers.
C. It is often used in practice to assess a specific firm's external environment.
D. It states that oligopolistic industries are less competitive if firms choose to engage in price
wars.
17. Mr. Crunchy Inc. is a firm experiencing severe losses. However, with large initial investment in
(p. 113) manufacturing equipment and infrastructure, the firm is finding it difficult to abandon the
industry. According to Porter's five-force model, the company is facing a(n):
B. exit barrier.
D. substitute threat.
Difficulty: 3 Hard
18. According to Porter's five-force model, if suppliers of a particular good are very abundant,
(p. 113) _____.
A. their bargaining power will be less

B. their level of differentiation will be very high
C. their level of vertical integration in the industry will be high
D. their annual employee turnover rates will be less
6-14
Education.
19. Ceramic Customs Corp. required a specific type of ceramic to make its tiles. Since there was
(p. 113) only one supplier for that particular ceramic, the firm was forced to source all of its supplies
from it. The firm tried negotiating the price of the material but failed to get any reduction on
the cost. This was because:
A. the supplier had more bargaining power than the firm.

B. the supply was unlimited.
C. the supply exceeded the demand.
D. the industry had barriers to entry.
Difficulty: 3 Hard
20. According to Porter's five-force model, if a buyer can threaten to backward vertically integrate,
(p. 113- it will:
114)
A. decrease the buyer's bargaining power.

B. increase the buyer's bargaining power.
C. increase the supplier's bargaining power.
D. lower the threat of entry into the industry.
21. Factors that make it difficult or expensive to change suppliers or buyers are referred to as
(p. 114) _____.
A. transactional costs
B. monopoly costs
C. marginal costs
D. switching costs
Difficulty: 1 Easy
6-15
Education.
22. Perfecto Espresso Corp. is a chain of coffee shops in the United States. Earlier it used to
(p. 114) source its coffee from several coffee suppliers. However, recently it started its own coffee
plantation to supply its coffee shops. This is an example of:

D. substitution.
Difficulty: 3 Hard
23. Allure Fabrics Corp. supplies cotton, linen, and silk fabrics to various designer wear boutiques
(p. 114) in and around Florida. The firm has recently launched a boutique in Florida under its own
brand name to sell women's fashion apparel. Allure Fabrics is practicing:

D. substitution.
Difficulty: 3 Hard
24. Scripts & Scrolls Corp. supplies printing paper to select publishing houses. When its
(p. 114) customers asked for a discount in the cost of supplies, the company had to oblige fearing that
the customers might withdraw pending contracts. This shows the increased:
A. bargaining power of buyers.

B. bargaining power of suppliers.
C. threat of substitutes.
D. vertical integration of buyers.
Difficulty: 3 Hard
6-16
Education.
25. Ample Espresso Corp. is a coffeehouse located across from Tian's Kitchen, a restaurant.
(p. 114) According to Porter's five-force model, the services and products provided by both are most
accurately classified as:
A. complements.
B. competitors.
C. substitutes.
D. intermediates.
26. Sam's Sugar Corp., a leading cane sugar manufacturer, faces a threat of going out of business
(p. 114) when a rival company introduces a zero-calorie sweetener to replace the high-calorie cane
sugar. According to Porter's five-force model, the two products are:
A. complements.
B. supplements.
C. intermediates.
D. substitutes.
27. The Corner Shop Corp. is a leading supermarket chain in Chicago. According to Michael
(p. 116) Porter's model of a value chain, which of the following activities of the firm is a primary
activity?
A. A training session for the floor attendants at The Corner Shop outlets
B. An advertising campaign for a new The Corner Shop outlet
C. The accounting function at The Corner Shop outlets
D. The hiring of lawyers to ensure that the firm adheres to labor laws
6-17
Education.
28. According to Michael Porter's model of a value chain, which of the following is a support
(p. 116) activity?
A. Accounting activities
B. Outbound logistics
C. Marketing
D. Inbound logistics
Difficulty: 1 Easy
29. Which of the following would be an example of a tacit resource?

(p. 118)
A. An oddsmaker who works for a large casino in Las Vegas and is correct 95 percent of the
time
B. Hand-woven fabrics made by local shops
C. Chipset manufacturing machine bought by an electronics company
D. A distiller used to make malt liquor
Difficulty: 3 Hard
30. A resource can be extremely difficult to imitate if:

(p. 118)
A. it can be readily codified in written form.

B. it is not path dependent.
C. it arises through the complex interaction of multiple people.
D. it is clear how the resource gives rise to value.
6-18
Education.
31. Socially complex resources are:
(p. 118)
A. resources or activities that emerge through the interaction of multiple individuals.

B. resources that cannot be defined in terms of a numerical value.
C. resources that require public sanction in order to be utilized for profit-making purposes.
D. resources that are shared by different parties thereby making them easily imitable.
32. The relationship between a _____ resource and the outcome it produces is poorly understood.
(p. 118)
A. socially complex
B. causally ambiguous
C. logistically outbound
D. logistically inbound
Difficulty: 1 Easy
33. Which of the following statements is true of core competencies?

(p. 119)
A. A firm's core competency refers to a single ability.

B. A firm's core competency is more than just a core technology.
C. An individual business unit has only one core competency.
D. A firm's core competency is usually easy to imitate.
6-19
Education.
34. Piezo Tech Solutions supplies hospitals with software to track insurance claims. As insurance
(p. 121) regulations and policies are always changing, its software needs to have the ability to be agile
and responsive to change. In other words, the software needs:
A. dynamic capabilities.
B. tacit resources.
C. rigid competencies.
D. to be path dependent.
35. When Faslow Medical Center in Exeter County changed its name to Faslow Hospital, it also
(p. 121) unveiled a plan to build a medical tower that would double its physical facilities by 100
percent within the next 10 years. It also announced that its goal was to not only serve Exeter
County but also the entire region including the five contiguous counties. This is most
accurately an expression of:
B. strategic intent.
C. monopoly rent.
D. supplier bargaining power.
Essay Questions
6-20
Education.
36. Explain the influences on the threat of potential entrants into a market according to Porter's
(p. 113) five-force model.
According to Porter's five-force model, the threat of potential entrants is influenced by both
the degree to which the industry is likely to attract new entrants (i.e., is it profitable, growing,
or otherwise alluring?) and the height of entry barriers. Entry barriers can include such factors
as large start-up costs, brand loyalty, difficulty in gaining access to suppliers or distributors,
government regulation, threat of retaliation by existing competitors, and many others. While
profitability and growth may attract new entrants, entry barriers will deter them.
37. What properties must resources have to be a potential source of sustainable competitive
(p. 118) advantage?
To be a potential source of sustainable competitive advantage, resources must be rare,

valuable, durable, and inimitable. Resources that are rare and valuable may yield a
competitive advantage, but that advantage will not be sustainable if the firm is incapable of
keeping the resources, or if other firms are capable of imitating them. If a firm lacks the
capital to reinvest in its brand image, it will erode. Furthermore, many valuable resources are
quickly imitated by other firms. Technological advances are reverse-engineered, skillful
marketing campaigns are copied, innovative human resource practices are adopted by
imitators, and so on. Some resources, however, are not readily imitable.
6-21
Education.
38. What are core competencies?
(p. 119)
A company's core competencies are typically considered to be those that differentiate it

strategically. A core competency is more than just a core technology. A core competency
arises from a firm's ability to combine and harmonize multiple primary abilities in which the
firm excels into a few key building blocks of specialized expertise.
39. Explain the advantages and disadvantages of rewarding and promoting the development of
(p. 120- core competencies.
121)
By rewarding and promoting the development of your core competencies you can really excel
at it and continue to be successful in your industry. After all, the core competence gives you
an advantage over your competition, and you should leverage that as far as possible. By
viewing the business as a portfolio of core competencies, managers are better able to focus
on value creation and meaningful new business development, rather than cost cutting or
opportunistic expansion.
The disadvantage is that the organizational culture may reward employees who are most
closely connected to core competencies with higher status and better access to other
organizational resources. While these systems and norms can prove beneficial in reinforcing
and leveraging the firm's existing core competencies, they can also inhibit the development of
new core competencies. Firms that have well-developed knowledge sets along a particular
trajectory may find it very hard to assimilate or utilize knowledge that appears unrelated to
that trajectory, potentially limiting the firm's flexibility. Students' answers may vary.
Difficulty: 3 Hard
6-22
Education.
40. What is the danger of not having a strategic intent? In your answer, assume your company
(p. 121- operates a hospital in a city with a population of 30,000 people, located about 50 miles away
123)
from a large city.
Without a strategic intent, the hospital will fail to recognize future market needs and will only
try to maintain its current market position. The hospital can easily become focused on
markets it has served in the past due to a lack of forward-looking orientation. Most likely,
hospitals from the larger city will try to become more regional in nature by opening satellite
centers in the county where the local hospital is located. They will also adopt the latest
medical technology. Local physicians may start sending patients to the other, larger hospitals
as the hospital will not be able to provide the best medical treatment to its patients.
Employees will complain about having out-of-date technology and of losing patients to larger
hospitals. This lower morale will adversely affect turnover. The local community will probably
also become disgruntled. Students' answers may vary.
Difficulty: 3 Hard
6-23
Education.
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“There is always hope. Let us hope that in another state we shall
better know how to love and forgive one another. Here, we have a
poor understanding of this; but even here we can forgive. They will
not now forgive you; but you will leave them that which will make
them do so hereafter. Leave them your pardon.”
“O, Alice,—my daughter! Not if they murder Alice.”
“They shall not. I promise you——”
“But I did not expect this,” uttered the shivering prisoner. “I went to
bed——”
“Then collect yourself now. A few minutes’ resolution.—One effort
at calmness——”
“But is there no hope?”
“None whatever. Settle your mind to your fate. There is only
misery in struggling against it.”
“I will. I will. Only stay by me.”
“What a confidence for such a moment!” thought Charles, as he
saw the tractable expression which the countenance assumed. It
was some comfort, however, that there was any confidence which
could give decency to his dying deportment.
The people around grew impatient. The executioner lifted his
sword. The victim looked up at it, half fearfully, half meekly, like a
penitent child at the impending rod. He fell, without a sign or a cry;
and at the moment, the flames burst forth from the lower windows,
as if to lick up, in as summary a vengeance as they had been guilty
of, the perpetrators of this murder. All rushed from the terrace, with a
yell of consternation, leaving the body alone, its unclosed eyes
shining in the glare, as if gazing unmoved on that violence which
could no longer reach it in the shape of injury.—When the gust fell,
and the flames retired some space, the ruffian who held the sword
returned to the place of execution, severed the head, tossed the
body into the flames, and returned with his trophy to the cheering
mob.
There was nothing for Charles and Antoine to stay for. They could
neither save property, nor prevent crime. There was no purpose to
be answered by an attempt to do the first; for the lady Alice could
never return hither, or probably find any corner of her native land in
which to dwell in peace. Any endeavour to check the people’s rage
would only have brought on more murders. It was better that they
should occupy themselves with destroying inanimate things than
have their wrath directed upon human objects. The brothers
therefore left them endeavouring to discover the treasure-chamber,
and paced silently homewards, trying whether, after such a spectacle
as this, their hopefulness could get the better of their heart-sickness.
Chapter IX.
ADJUSTMENT.
Marguerite began to think that she and her family had better have
staid in Paris, since violence as foul as any there, with less chance
of redress, took place in the country. But as there were fewer marked
for destruction in a thinly peopled than in a crowded district, the work
of horror was sooner over; and within a few weeks, all was quiet
around her dwelling. No judicial inquiry whatever was made into the
fate of the marquis; and night after night, ominous gleams were seen
from afar, marking where life and property were being offered up in
expiation of former tyranny. When every neighbouring chateau that
was empty had been sealed up and guarded by the people from
being entered by its owners; and when every inhabited one had
been dismantled or converted into a pile of blackened ruins, there
was a truce. The gentry sighed over the abolition of feudalism; the
peasantry gloried in the destruction of the aristocracy; and both,
looking no farther than their own borders, supposed that all was
over, and the state of the country,—miserable as it was,—settled.
Charles and his brother knew too well what was passing in Paris
to acquiesce in this belief; but they were glad of the good effects it
seemed to produce in quieting the minds, and therefore fixing the
outward circumstances of their neighbours. People went about their
regular business once more, prices grew steady in the markets, and
the mysterious, dishonest sort of bargaining which had gone on
immediately after the destruction of the chateaux, was seen no
more. No golden timepieces now passed from hand to hand, in
exchange for the coarsest articles of clothing or furniture; and if
polished tables, or morsels of curious old china were seen here and
there in the hovels of half-starved peasants, they were not put up for
sale, and did not answer the purpose of further perplexing the values
of things. Seeing that Marguerite began to feel pretty much at her
ease once more, going to rest without presentiments of being roused
by fire, and venturing, with only the children, to transact her
necessary purchases among the peasantry, Charles began to try
whether he could make anything of his business at Paris; and set
out, in order that he might be on the spot to take advantage of the
first symptoms of tranquillity to meet the demand which would then
certainly arise.
He went to Paris before winter was quite over; and found more
promise of a settlement of public affairs than at any time since the
commencement of the revolution. Yet he would not hear of his family
joining him, till it should be known whether or not king, parliament,
and people would cordially agree in the new constitution which was
then in preparation. When there was not only a promise of this, but
all arts and artificers were actually put in requisition to render the
spectacle of taking the oath as magnificent as the occasion required,
there was no further pretence for Charles’s prudence to interfere with
the hopefulness which now seemed rational enough. He sent a
summons to Marguerite to return and witness the festival from which
her loyalty and his patriotism might derive equal gratification. But
Marguerite was detained in the country by her father’s illness,—his
last; and the children were deprived of the power of saying
afterwards that they had witnessed in Paris the transactions of that
day which was regarded at the time as the most remarkable in the
annals of France.
That day, the 14th of July, 1790, was appointed to be a high
festival throughout the kingdom: Charles passed it in the Champ de
Mars; Marguerite by the dying bed of her father; the children, under
the guardianship of their uncle Antoine, among the rejoicing
peasantry; and Steele, who had returned to Bordeaux when Charles
settled himself again in Paris, took the opportunity of visiting La
Haute Favorite for the first time after so many vicissitudes.
It seemed to them all a strange,—to the superstitious among them,
an ominous circumstance that they should be thus separated on the
occasion when all were called upon to recognize the social
agreement under which they and their successors were to live.
A gleam of the afternoon sun shone in upon the face of
Marguerite’s father as he dozed, and made him turn restlessly on his
couch. His daughter hastened to shut it out, and the movement
awoke him.
“One is fit only for the grave,” he said, “when the light which shines
on all above it becomes painful.”
“Father! you are better,” said Marguerite, turning round astonished.
“No,” said he, faintly, “not better. I cannot bear this light,—or this
heat,—or—but no matter; it will presently be over. But where is
Charles?”
“He will be here very soon; but it is only two days since you
became worse; and there has been no time for him to come yet. To-
day he is waiting upon the king, and next he will wait on you.”
“On the king!” and the old man was roused at once. “And all the
people? I fancied they had left off their duty. Who waits upon the
king?”
“The whole nation,” Marguerite replied, sighing to herself,
however, over her own view of the matter—that the king was, in fact,
waiting upon the nation. She proceeded to tell what was doing in
Paris, and remarked that she hoped they had finer weather there
than here, where it had been a day of continued rain, till the gleam
came which had wakened her father.
M. Raucourt was too ignorant of the events of the last two years to
be able to comprehend the present proceeding. He could not see
what the people had to do with the constitution; but laid the blame on
his own weak brain, when assured that the loyal men of France were
all consenting to the measure. Other tokens of ignorance were much
more affecting to his daughter. He wished to be raised in bed, so that
he might see his olive woods in the evening glow. They were no
longer there, and his attention must be diverted to something else.
He wished to behold the marquis de Thou passing the house for his
daily ride.—The bones of him he asked for were mouldering under
the ruins of his own abode.—“At least,” said M. Raucourt, “let me be
carried to the window, that I may see the chateau. It looks so finely
on the terrace! and it is so long since I saw it!”—Grass was growing
on its hearths, and the peasants’ children were playing hide and
seek among its roofless halls.
“You have not asked for the children,” said Marguerite. “If you are
so strong this afternoon, perhaps you can bear to speak to them.”
And they were sent for, and presently made their appearance from
the river-side, full of what they had been seeing and doing. They told
how one cannon was fired when the hour struck at which the royal
procession was to set out, and another when the whole array was to
be formed in the Champ de Mars, and others to represent the taking
of the oath by the king, by the representatives of the parliament, and
by Lafayette in the name of the people.
“And what is all this for?” asked the old man. “It is a beautiful
spectacle, no doubt; but there were no such things in my time as the
king and the people swearing at the same altar.”
“The people make the king swear, and some of them do not think
he likes it,”—observed Julien, unmindful of his mother’s signs.
Pauline went on,
“No more than he liked being brought prisoner from Versailles, and
having his guards’ heads cut off.”
The little girl was terrified at the effect of her words. She in vain
attempted to make up for them by saying that the king and queen
were very well now; and that the people did not expect to be starved
any more, and that everybody was to be very happy after this day.
The loyal old man said he should never be happy any more; and
groaned and wept himself into a state of exhaustion from which he
did not revive, though he lived two or three days longer.
“I wish,—I wish—” sobbed poor Pauline, “that the people had
never meddled with the king——”
“Or the king with the people,” said Julien, “for that was the
beginning of it all.”
“I am sure so do I,” said Marguerite, sighing. “It is little comfort to
say, as Antoine does, that the world cannot roll on without crushing
somebody.”
“If that somebody puts himself in the way, uncle said,” observed
Julien.
“Everybody has been in the way, I think, my dear. All France is
crushed.”
“Not quite, mamma. Uncle Antoine and Mr. Steele are sitting
between the two big vines, and they say that everybody will be
buying wine now that buying and selling are going to begin again.”
It was very true that the young men were enjoying their favourite
retreat to the utmost; gilding it with the sunshine of their
expectations, and making it as musical with the voice of hope as with
the gay songs which were wafted from the revellers below.
They were not a little pleased when their anticipations were
countenanced by a letter from Charles which reached his wife on the
day of her father’s death, and was not the less in accordance with
her feelings for having been written before tidings of the old man’s
illness had reached Paris, and being, as usual, hopeful and happy.
“I have written to Antoine,” he said, “to urge all care in the
approaching vintage, and all dispatch in the management of our
immediate business. Good days are coming at last, unless
despotism should bring on itself a new punishment, and rouse once
more the spirit of faction, which has been laid to rest this day by that
powerful spell, the voice of a united nation. It would astonish you to
see how commercial confidence has already revived; and, as a
consequence, how the values of all things are becoming fixed; and,
again, as a consequence of this, how the intercourses of society are
facilitated, and its peace promoted. It was the perception and
anticipation of this which to me constituted the chief pleasure of the
magnificent solemnity of this day. It was a grand thing to behold the
national altar in the midst of an amphitheatre filled with countless
thousands; but it was a grander to remember that these thousands
were only the representatives of multitudes more who were on tiptoe
on all our hills, in all our valleys, watching and listening for the token
that they may trust one another once more, and exchange, for their
mutual good, the fruits of their toil. It was touching to see the
battalion of children,—‘the hope of the nation,’—coming forward to
remind the state that it sways the fate of a future age; but it was
more touching to think of our own little ones, and to believe that, by
the present act, the reward of the social virtues we try to teach them
is secured to them.—It was imposing to see one golden flood of light
gush from a parting cloud, giving an aspect of blessing to what had
before been stormy; but it was as an analogy that it struck us all, and
impelled us to send up a shout like the homage of worshippers of the
sun. Has not a light broken through the dreariness of our political
tempests? There maybe,—let us hope there will be, from this day,
order in the elements of our social state. Let but all preserve the faith
they have sworn, and there will be no more sporting with life and
property, no absurd playing with baubles while there is a craving for
bread, no ruin to the industrious, and sudden wealth to such as
speculate on national distress. We may once more estimate the
labour of our peasantry, and the value of our own resources, and fix
and receive the due reward of each. We may reach that high point of
national prosperity in which the ascertainment and due recompense
of industry involve each other; when the values of things become
calculable, and mutual confidence has a solid basis.—I do not say
that this prosperity will come, but I hope it will; and if all others have
the same hope, it certainly will. It may be that the sovereign will lose
his confidence, and go back. It may be that the parliament or the
people will do the same; and then may follow worse miseries than
we have yet known. But if they see how much social confidence has
to do with social prosperity, they will refuse to disturb the tranquillity
which has been this day established.
“And now, however you may sigh or smile a the spirit of hope
which is in me and Antoine, what say you to it in the case of a
nation? Are not its commercial exchanges a most important branch
of its intercourses? Must not those exchanges be regulated by some
principle of value, instead of being the sport of caprice? Is not that
principle the due and equable recompense of labour, or (in business-
like terms) the cost of production? Is not this recompense secured by
the natural workings of interests—and can these interests work
naturally without an anticipation of recompense—that is, without
hope, inspiring confidence? Depend upon it, hope is not only the
indispensable stimulus of individual action, but the elastic pressure
by which society is surrounded and held together. Great is the crime
of those who injure it; and especially heinous will be the first trespass
on public confidence of any who have been in the Champ de Mars
this day. As that which is national springs from that which is
individual, I will add that Antoine and Steele are patriotic if they exult
in the ripening beauties of Favorite; and if you would be patriotic too,
gladden yourself with the promise of our children, and tell me, when
we meet, that you trust with me that all will be well both with our
wines and our politics.”
Summary of Principles illustrated in this Volume.
There are two kinds of Value: value in use, and value in exchange.
Articles of the greatest value in use may have none in exchange;
as they may be enjoyed without labour; and it is labour which confers
Exchangeable Value.
This is not the less true for capital as well as labour being
employed in production; for capital is hoarded labour.
When equal quantities of any two articles require an equal amount
of labour to produce them, they exchange exactly against one
another. If one requires more labour than the other, a smaller
quantity of the one exchanges against a larger quantity of the other.
If it were otherwise, no one would bestow a larger quantity of
labour for a less return; and the article requiring the most labour
would cease to be produced.
Exchangeable value, therefore, naturally depends on cost of
production.
Naturally, but not universally; for there are influences which cause
temporary variations in exchangeable value.
These are, whatever circumstances affect demand and supply.
But these can act only temporarily; because the demand of any
procurable article creates supply; and the factitious value conferred
by scarcity soon has an end.
When this end has arrived, cost of production again determines
exchangeable value.
Its doing so may, therefore, stand as a general rule.
Though labour, immediate and hoarded, is the regulator, it is not
the measure of exchangeable value: for the sufficient reason, that
labour itself is perpetually varying in quality and quantity, from there
being no fixed proportion between immediate and hoarded labour.
Since labour, the primary regulator, cannot serve as a measure of
exchangeable value, none of the products of labour can serve as
such a measure.
There is, therefore, no measure of exchangeable value.
Such a measure is not needed; as a due regulation of the supply
of labour, and the allowance of free scope to the principle of
competition ensure sufficient stability of exchangeable value for all
practical purposes.
In these requisites are included security of property, and freedom
of exchange, to which political tranquillity and legislative impartiality
are essential.
Price is the exponent of exchangeable value.
Transcriber’s Note
Words hyphenated on line or page breaks have the
hyphen removed if the preponderance of other
occurences are unhyphenated. Hyphens occuring
midline are retained regardless of other unhyphenated
occurences (step-mother/stepmother, straight-
forward/straightforward, life-time/lifetime, work-
house/workhouse, fish-women/fishwomen, door-
way/doorway).
At line 12 of page 27 in “For Each and For All”, there is
an opening double quote which seems superfluous. The
author’s intent not being clear, it has been retained.
Other errors deemed most likely to be the printer’s
have been corrected, and are noted here. The
references are to the page and line in the original. Given
the independent pagination of the original, these are
divided by volume.
Homes Abroad.
11.13 and immedi[di]ately Removed.

placed
12.21 and get no bread?[’/”] Replaced.
19.29 to save them yet.[’/”] Replaced.
20.20 the happiness of the Added.
people[.]
31.4 is the price of food?[’/”] Replaced.
45.32 prosperity of John Lawe, Replaced.
Esq.[’/”]
38.18 [“]You had need take care Restored.
47.8 on a fool’s errand.[”] Added.
48.29 pleased [ta/at] the Transposed.
appearance
52.31 who had settled among Added.
them[.]
55.28 [y/h]ence arise Transposed.
discontents
55.29 [h/y]ears years of his new Transposed.
life
57.33 [rdbo/bord]ering upon it Transposed.
62.26 any thing about them.[’/”] Replaced.
67.24 [‘/“]She will do Replaced.
87.21 a gang of bush[ /-]rangers Added.
116.19 It was not Ellen[ /’]s wish Restored.
125.1 of her colonies[.] Added.
125.13 can be had Transposed.
el[es/se]where.
For Each and For All.
38.13 from a deficiency of Restored.

[g]ood
96.1 to convey him a[u/n]d his Inverted.
securities
French Wines and Politics.
21.34 [e]verybody else Restored.

64.7 and to recal[l] the Added.
servants
68.2 downfal[l] of their Added.
despotic sway
80.27 as there wo[n/u]ld be Inverted.
81.7 A[u/n]d a low Inverted.
exchangeable value
98.1 your literal Replaced.
depend[a/e]nce on them
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Strategic Management of Technological

Innovation 5th Edition Schilling Test

Defining the Organization's Strategic Direction

True / False Questions

8. Ammunition can be considered a complement for firearms.

Multiple Choice Questions

16. Which of the following statements is true of Porter's five-force model?

A. their bargaining power will be less

A. the supplier had more bargaining power than the firm.

A. decrease the buyer's bargaining power.

A. forward vertical integration.

A. forward vertical integration.

A. bargaining power of buyers.

29. Which of the following would be an example of a tacit resource?

A. it can be readily codified in written form.

31. Socially complex resources are:

A. resources or activities that emerge through the interaction of multiple individuals.

33. Which of the following statements is true of core competencies?

A. A firm's core competency refers to a single ability.

38. What are core competencies?

True / False Questions

1. Formulating a technological innovation strategy first requires an accurate appraisal of where

8. Ammunition can be considered a complement for firearms.

structure and routines in response to new opportunities.

Multiple Choice Questions

A. It states that the attractiveness of an industry is unaffected by the industry's degree of

industry. According to Porter's five-force model, the company is facing a(n):

A. their bargaining power will be less

A. the supplier had more bargaining power than the firm.

A. decrease the buyer's bargaining power.

plantation to supply its coffee shops. This is an example of:

A. forward vertical integration.

brand name to sell women's fashion apparel. Allure Fabrics is practicing:

A. forward vertical integration.

A. bargaining power of buyers.

accurately classified as:

sugar. According to Porter's five-force model, the two products are:

29. Which of the following would be an example of a tacit resource?

30. A resource can be extremely difficult to imitate if:

A. it can be readily codified in written form.

A. resources or activities that emerge through the interaction of multiple individuals.

33. Which of the following statements is true of core competencies?

A. A firm's core competency refers to a single ability.

and responsive to change. In other words, the software needs:

To be a potential source of sustainable competitive advantage, resources must be rare,

A company's core competencies are typically considered to be those that differentiate it

11.13 and immedi[di]ately Removed.

For Each and For All.

38.13 from a deficiency of Restored.

French Wines and Politics.

21.34 [e]verybody else Restored.

Updated editions will replace the previous one—the old editions

Creating the works from print editions not protected by U.S.

START: FULL LICENSE

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